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Dreamworld class action settles for $26m
A shareholder class action against Ardent Leisure over a fatal incident at Dreamworld has settled for $26 million.
Naomi Neilson
Ardent Leisure, the owner of the Gold Coast theme park, agreed to settle the class action without an admission of liability, almost seven years after four people died on the Thunder River Rapids Ride.
The Piper Alderman-led class action alleged Ardent misled its investors about its safety measures and that renovations to the ride – which included new construction and removal of slats – had resulted in a number of hazards Ardent should have been aware of.
Four people were killed when two water pumps failed, leading to lower water levels. Two rafts collided, sending one over and throwing two people into the water and trapping two more inside.
A coronial inquest determined the deaths were a result of a “systemic failure” amid a theme of “general ignorance of proper safety and adequate assessment” and “shoddy record keeping”.
After the incident in October 2016, Ardent suffered a statutory loss of $49.4 million and its share price dropped dramatically.
The theme park owner had been hit with a $3.6 million fine after it pleaded guilty to three charges of breaching the Queensland Work Health and Safety Act 2011.
Ardent will pay $4 million in the settlement, with the remainder covered with insurance.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
